When I first received my driver’s license back in the days when I had a thick head of hair and had to start paying for my own gasoline, it was 55.9 cents per gallon. I remember that distinctively as I saw my hardearned money rolling away as the numbers on the pump spun rapidly like the wheels of a slot machine.
If that isn’t slow-motion compared to today.
At about the same time, my girlfriend and I could go out to dinner and have a great, full meal at a nice place for about $15 – tip included.
I also remember the days a hamburger, fries and drink at McDonald’s was under a buck. Yes, for all three items, and you could top it off with a candy bar – full size – for a dime.
I’ve paid 5 cents for a pack of 10 Topps baseball cards, including the gum, and remember crying as a kid when the price doubled to 10 cents. A roll of Life Savers was a nickel.
Ears of corn cost $1 for a dozen. A dozen eggs were cheaper than that.
In the late 1980s, I remember writing a newspaper column saying how absurd it was to put the phrase “affordable housing” in the same sentence with $100,000. Speaking of homes, the first one Nancy and I purchased set us back $22,000 – and we sold it for a profit at $25,000 when my career took me elsewhere.
Now, I’m certainly not campaigning to have those prices come back to us, even though that would be tremendous. But, I am scratching my head over this outrageous inflation rate that has those of us who live from paycheck to paycheck wondering just how we’re going to survive.
It recently was announced that the annual inflation rate in the United States “unexpectedly” accelerated to 8.6 percent in May, the highest since December 1981. I was 20 years old back then.
May energy prices – gulp – soared 34.6 percent, the most since September 2005, due in part to gasoline (up 48.7 percent) and fuel oil (up 106.7 percent, the largest increase on record).
Now, that’s a reason to have gas! Food costs surged 10.1 percent, the first increase of 10 percent or more since March 1981. Heading the grocery list hikes were meats, poultry, fish and eggs, up 14.2 percent.
The chickens must be getting paid overtime.
There currently is no such thing as a cheap trip to the grocery store or only spending a few dollars at the pump.
I always try to keep the tank of my pickup half full – just in case I need to go somewhere at the spur of the moment. That half tank of gas now costs me $50.
Fifty dollars!
It appears there is a race to see what hits $5 a gallon first – gas or milk. Fruits and vegetables? Geez, it’s getting too expensive to eat healthy. But at the same time, look at the price of ice cream, or even a bag of chips.
And if you need a vehicle? Egad. It’s certainly wise to take great care of the mode of transportation you currently have. New vehicle prices went up 12.6 percent while used vehicles are more expensive by 16.1 percent.
I recently saw a used Jeep … used, nothing overly fancy … going for about $50,000.
Supply vs. demand? Get real.
Before 2022, the Consumer Price Index hadn’t gained more than 8.3 percent on a year-over-year basis since 1982.
Inflation is defined as the gradual rise in prices and slow decline in purchasing power of your money over time. The experts say it occurs when prices rise across the economy, decreasing the purchasing power of our money.
We’re told not to think of inflation in terms of higher prices for just one item or service, however. Inflation refers to the broad increase in prices across a sector or an industry, like the automotive or energy business – and ultimately a country’s entire economy.
And broad increases there are – everywhere!
And we’re not even mentioning things like lumber or appliances or clothing.
The holier-than-thou attire just may come back into style. …
So, what to do? I recently came across a generic list of tips to help fight inflation. I’m not sure how helpful they are, but here goes:
• Do a weekly budget check. Don’t wait until the end of the month to check your spending and realize you’ve gone over your budget.
In other words, find out every week you have no money left to spend anywhere.
• Unplug appliances when you’re not using them to save on energy costs.
And maybe see if they’ll work – still saving that money – while they remain unplugged. Or simply get an old hand-held washboard.
• Be strategic on using your vehicle to save on gas. Meal plan ahead of time to save on trips to the store.
In other words – walk and go hungry.
• Shop carefully. Buy in bulk and buy off brand products to save on the essentials. You can also buy groceries online, where you are less likely to be sucked into buying something you don’t need.
OK, go get that 84-roll toilet tissue pack. And order those frozen foods online to be delivered in this 100-degree heat.
• Don’t accumulate credit card debt. No matter the interest rate, we will pay more back later.
This fits in with some of the above. If you walk, don’t use appliances and go hungry – you may not need to charge anything.
• Don’t stop saving for retirement. Over time, inflation will continue to grow and you’ll want to have a nest egg.
Yes, a single penny saved is still a single penny earned.
Inflation: By the time we finally can make ends meet, inflation moves the ends.
Oh, and inflation is when we pay $15 for the $10 haircut we used to get for $5 when we had hair.
As always, thanks for reading.
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